What to do now that tax season has passed

Most small business owners only think of their taxes around the required deadlines. But how you prepare for them the year prior is much more important than the actual filing date.

Most business owners unfortunately think of taxes as a once annual occurrence, where they file at the deadline and forget about it for another year. However, utilizing proper deductions and creating a gameplan throughout the year is the most important aspect of minimizing your tax liability. It's estimated that over 90% of small businesses overpay on taxes.

The Cost of a Reactive Approach

When business owners wait until tax season to think about deductions and liabilities, they’re playing defense. By then, many money-saving moves are off the table. The best tax advantages—like certain retirement contributions, depreciation planning, or strategic business purchases—must be initiated and tracked throughout the year.

Worse yet, relying on a once-a-year meeting with a tax preparer usually means your financial professional is working with limited data. They’re looking at what already happened rather than helping you plan for what could happen. That’s like checking a map after you’ve taken the wrong exit.

Proactive Tax Planning

Tax planning isn’t just for giant corporations or millionaires. Every small business—from a single-member LLC to a growing S-corp—can benefit from a proactive tax strategy. I've personally helped cigar lounges (amongst other businesses) identify missed deductions that cost them on prior tax returns. Utilizing these write-offs means working with an accountant or tax advisor not just in March or April, but throughout the year to:

• Track deductions as they happen - Did you know meals, travel, and even portions of your home office might be deductible? These items are easy to forget if you’re not keeping records all year long. A proactive system helps ensure nothing is missed.

• Adjust quarterly estimates - Underestimating taxes can lead to penalties, but overestimating means giving the IRS an interest-free loan. Proper forecasting based on up-to-date books can fine-tune your estimated payments and free up your cash.

• Make smart, timely decisions - Should you purchase new equipment now or wait until Q4? Is it the right year to convert to an S-corp? These are decisions best made in consultation with a financial professional who understands your business in real time—not just your historical numbers.

• Take advantage of tax credits - From employee retention credits to energy-efficient deductions, there are countless programs that go unused simply because business owners don’t know they exist or how to qualify.

  
  

Your Tax Bill Is Optional (Sort of)

While taxes are mandatory, how much you pay is far more flexible than most realize. With the right structure, tracking, and guidance, your liability can shrink significantly. But the only way to achieve that is by being intentional before tax season hits.

Waiting until the last minute may feel like the norm, but it’s a habit that’s costing small business owners billions collectively. The businesses that thrive—and keep more of what they earn—are the ones that view taxes not as an annual event, but as an ongoing process.

Don’t Let Uncle Sam Take More Than He Should

You work hard for your money. Why hand over more of it than necessary?

The truth is, minimizing your tax bill isn’t about cheating the system—it’s about understanding the system. The IRS tax code is filled with opportunities for those who know where to look. But if you’re only looking once a year, chances are you’re missing out.

If you’re serious about growing your business and keeping more of what you earn, now is the time to shift your mindset. Start treating your taxes like the year-round priority they are. The right strategy can save you thousands—year after year.

Reach out to our team today to start the conversation.